How much to put aside for taxes (1 Viewer)

[jrdbrn]

My wife began selling real estate. She sold just 3 properties this week so we need to start thinking of taxes. Her broker told her 18%... my boss said 30%.

Not looking for exact, just looking for a little more definitive of an answer.

 

[wnelson]

30% to be sure... my buddy sold 2 houses and that is what he did.

edit: congrats to her for the great work!

 

[RetroMcBananaFace]

I worked under 1099 for quite a few years and always aimed to save 30%, and usually ended up with a little bit extra cash after the return was filed. You could probably get away with 25% depending on the other household income (if you file jointly)

PS - Personal vehicle for work use and mileage deductions can save you a ton of money.

 

[jrdbrn]

Thanks for the input

We will put aside 30%. She def worked hard and closed her first 3 houses this week... in addition to her teaching job. Proud of her.

 

[saintfan]

It really kind of depends on how much your combined incomes are. I agree that 18% would be the more logical number, but I believe 30% would likely be too much unless you are seeking a larger refund. Because I do not know what your combined income for the year is projected to be, I would recommend that to be safe 25%.

 

[brandon8283]

Need to know what your combined income is to determine your tax bracket.


Sent from my iPhone using Tapatalk

 

[superchuck500]

Thanks for the input

We will put aside 30%. She def worked hard and closed her first 3 houses this week... in addition to her teaching job. Proud of her.

Also look into whether you need to send in estimated tax. Not doing isn't the worst thing in the world, but there is a penalty.

 

[GW93]

 

[SaintsJunkie]

We save 40%. Nice to get a bunch back

 

[porculator]

You'd only pay 30% on income above ~230k

2016 Tax Brackets | Tax Foundation

I don't know how much you make, but it sounds like your boss at least THINKS you make that much

 

[Det. Brees]

I am paid with 1099 on several jobs. Due to deductions I set aside 25% and I'm normally right where I need to be. However 30% and you'll be safe.

 

[Craigj]

I'm pretty sure you have to pay self employment tax on that income? That adds 15% plus your regular fed income taxes. And if your in LA don't for get another 4-5% for state tax. Depending on your income it could be way above 30%.

 

[JimEverett]

I pay the self-employment tax and I set aside 20% - very rarely have I come up short.

 

[The Mongoose]

I pay the self-employment tax and I set aside 20% - very rarely have I come up short.

You must have a ton of deductions.

 

[JimEverett]

You must have a ton of deductions.

Isn't every expense of the self-employed a business expense?